T-Mobile USA Sale Rumored

By Ed Oswald | Published July 5, 2005, 12:18 PM

For years, Deutsche Telekom has denied publicly that they would sell the U.S. arm of its worldwide T-Mobile phone operation. However, fund managers have told the press that the company plans to make a decision to sell the unit within the next several months.

At issue is the costs related with an eventual upgrade to 3G. The company is unsure whether or not it wants to spend the $5 to $10 billion that it is expected to cost to bring these data services to customers.

However, investors are skeptical as to whether a buyer could be lined up for the unit. Possible buyers for the unit could be mobile phone operator Vodafone, who owns 45 percent of Verizon Wireless, and uses GSM technology like T-Mobile. However, Vodafone representatives indicated the company has no interest in T-Mobile.

Analysts have questioned the wisdom of selling a growth engine for the company. "[T-Mobile CEO] Ricke can kiss good-bye to his goal to be the fastest-growing European integrated telecoms operator if he sells T-Mobile USA," said one fund manager. "There is nothing he could buy that would deliver growth on the same scale."

In any case, with only four major wireless providers left and T-Mobile the smallest of them all by far, the company must increase spending in order to keep pace. So a decision needs to be made soon, analysts say. "[It must] either commit to this, or look to divest itself of the asset at the best price," Rich Nespola, chief executive at U.S. consultancy Management Network Group told Reuters.

Comments

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Goodday,
Am Matins, i am interested in buying your phones. I lived in Nederlands and have five private companies all around the world where i deal in selling electronics and phones. I have a company in Africa and my brother is in charge. He called to inform me that the company is dry and our customers are demanding for phones urgently, that is why i want to buy your phone and will want it shipped directly to him with TNT corier express so as to make it fast. I will be respomsible for the shipping cost, so get back to me with your last offer and the shipping cost to him there. I will await your fast respond to this mail.

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T-mobile has GREAT rate plans, just look at them I sell ALL providers in the US, In the Wireless store that I manage. SPRINT's reception is the WORST. T-mobile isnt that much better. The best company out is Cingular. But there rate palns suck. But T-mobile is WORLDS better in coverage then Sprint. and WORLDS better in customer service and handset repaire. Sprint is possibly the worst Cellphone company out. T-mobile STILL has better equipment and reliability then Sprint. But Secondary to Cingular/ATT merger.

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Its obvious when you read the facts that they will sell, but it least its only the USA part there gonna sell, so thats fine by me !

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I would hope this doesn't happen...I gladly give up TV on my phone, etc. etc. "the rest of useless crap" to have good value for money. T-Mobile is the only carrier that gives unlimited net and txt messaging as well as T-Mo to T-Mo calls free for a solid price....I get 1000 minutes, nights & weekends free and all the above for 70 a month. No other carriers can do that....

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carrier to carrier free calls isnt a novel idea. every cell company has it, so nothing special there...
I get iunlimited text messaging plus more and my sprint bill is 59 a month. as far as the net access, net from a cell phgone IMO is just plain stupiod. sure an occasional jaunt to check email but with as small as the screen is and ther limitations of net from phone, it's not worth bragging about.
I get nights and weekends free as well too btw.

of all the cell companies out there I feel from past experience that t-mobile is the worst. no loss if they disappear

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Competition is the driving force behind this "Novel idea", and so when the smallest provider drops out who offers good and new deals to entice customers, what incentive will the bigger providers have ? It could be a bad move for consumers in the usa, but good news for the providers since they dont have to work harder to get new customers.

Glad its for the US arm only :P

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I have two phones w/ t-mobile for $66 and 1K minutes.

You can't beat that with sprint.

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T-mobile not suppose to go because they are the very 1st GSM company is USA with gr8 technology as compared to other service providers.again its the most growing company in wireless.they have more customer what they expected in their time frame.T-mobile is the only company that exist both side of pacific ocean with one single name.as far as comparing prices with voice and data they are cheaper than any other carrier.it is the only USA company that u can use it almost any where in the world with ur same number with low cost as compare to others.

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